Bitcoin, the leading cryptocurrency, fell suddenly to $62,300 last night. Analysts suggest the fall might continue. Today, attention is on the U.S. economic data, which could impact Bitcoin and altcoins.Â
The first Friday of each month sees investors eagerly awaiting this economic data. It’s a key indicator of the U.S. economy’s health.Â
Here are the latest figures:Â
- Non-Farm Employment Data: Reported at 114k (Expected: 176k, Previous: 206k)Â
- Unemployment Rate: Reported at 4.3% (Expected: 4.1%, Previous: 4.1%)Â
Bitcoin’s Reaction to the DataÂ
The non-farm employment data falling short of expectations suggests a slower economic recovery. This data is crucial as it influences the Federal Reserve’s monetary policy decisions. A cooler labor market could signal more caution from the Fed, especially if inflation also slows.Â
When employment data exceeds expectations, the dollar index (DXY) often rises, and Bitcoin may see a slight pullback. Conversely, if the data is below expectations, the DXY might decline, potentially benefiting Bitcoin.Â
An increase in the unemployment rate could lead to a sharp drop in the DXY, which would be positive for Bitcoin. However, expect high volatility in the markets around the time of these announcements.Â
